The Rupee opened stronger on Friday after a key U.S. inflation data came in line with expectations, reinforcing bets that the Federal Reserve will restart interest rate cuts next week. The rupee's slide to new lows on Thursday was unexpected after it looked to be in a range around the 88 handle. Relentless dollar buying from importers and likely an outflow, pushed the move and shows little sign of abating, the trader added. A measure of U.S. inflation, core CPI, matched expectations, keeping intact the already high odds of a 25-basis-point Fed rate cut next week. Alongside data pointing to softness in the labor market, it left no doubts over the rate cut path, bolstering risk appetite and weighing on the dollar. Economists have been watching U.S. inflation for evidence that President Donald Trump's tariffs are pushing prices higher. The Fed last lowered rates in December 2024. With a quarter-point cut fully priced in for next week, investors expect two more reductions this year. The dollar remained under pressure on Friday as a surge in U.S. jobless claims and a modest tick up in inflation kept investors zeroed in on likely Federal Reserve interest rate cuts next week and beyond. The dollar index was last trading at 97.585, having snapped a two-day winning streak on Thursday and on track to record its second consecutive weekly decline. The yield on benchmark 10-year Treasury notes edged up to 4.0282% compared with its U.S. close of 4.011%, after a decline in yields that came close to crossing the 4% mark for the first time since April. Pricing of Fed fund futures indicates that the market believes the Fed is certain to cut its key interest rate by 25 basis points (bps) on September 17 as labour market softness overshadows inflation risks. However, traders are reining in bets on a jumbo 50 bps rate cut next month, with pricing implying a shallower path of easing before the end of the year than anticipated earlier, according to the CME Group's FedWatch tool. Against the yen the dollar was trading flat at 147.27 yen , little changed after the U.S. and Japanese governments issued a joint statement on Friday, which reaffirmed that exchange rates should be "market determined" and that excess volatility and disorderly moves in exchange rates were undesirable. The euro stood at $1.1727 , depreciating 0.1% so far in Asia as traders curbed their bets on another European Central Bank rate cut this cycle, now seeing another move as a coin toss, after the bank sounded sanguine about the economic outlook. The Australian dollar was last trading 0.1% firmer at $0.6665 , holding steady near a 10-month high, while the kiwi slipped 0.1% to $0.5971 . Sterling traded at $1.3572 , slipping 0.1%, while the offshore yuan was last at 7.1135 yuan per dollar , trading flat. Oil prices edged lower on Friday after big falls in the last session over concerns about possible softening of U.S. demand and broad oversupply that offset worry about supply disruption from conflict in the Middle East and war in Ukraine. Brent crude futures fell 30 cents, or 0.45%, to $66.07 a barrel by 0114 GMT, while U.S. West Texas Intermediate crude fell 31 cents, or 0.5%, to $62.06.......